Can someone tell me how variable pay pro-ration wo...
# compensation-and-benefits
r
Can someone tell me how variable pay pro-ration works? I’ve seen companies only calculating with months. But my current company wants to follow days.
k
@Albus
a
Variable pay pro-ration is the process of calculating the amount of variable pay an employee is eligible for based on the number of days they have worked in a given period. This is usually done on a monthly basis, but some companies may choose to calculate it on a daily basis. The calculation is based on the number of days worked in the month divided by the total number of days in the month. For example, if an employee worked 20 days in a month with 31 days, they would be eligible for 20/31 of their variable pay.
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